This business is one of the best permanent management rights available on the South Side, with a return on investment of over 16%. The current net profit of $336,000 is growing, with investors changing over to the onsite manager and more tenants taking up meals. There is potential for the profit to grow to $350,000 over the next few months. This business comes with lots of upside.
Consisting of 83 units including the manager’s lot, there are 63 units are in the letting pool which means the body corporate relationship is very supportive and easy to manage as there are only 7 owner occupiers.
This complex is designed for the over 55’s looking for a hot meal to be prepared for them. Food is mandatory and tenants utilise this service, as the units are usually only one bedroom, one bathroom with kitchenette. Rents are around $270 per week including lunch. They charge a standard letting commission with additional charges including: a Community Service fee, extra meals etc.
The gardens are not big, they are low maintenance and there is no gym, swimming pool or spa to worry about. There is a dedicated kitchen and communal dining room where food is prepared and served. This is owned and maintained by the body corporate but the manager has exclusive use.
The manager’s lot comprises of a three bedroom, two bathroom unit in a breezy elevated position overlooking the tranquil grounds, which makes it easy to keep an eye on things in your complex. Income has been verified by specialist management rights accountants, Q&T accountants. Financing a complex like this is different, due to the income from food, meaning you may need a deposit between 30-50%, which is more than typically required in the industry.